Critical petermann K factor for intensity noise squeezing

We investigate the impact of the Petermann-excess-noise factor K>/=1 on the possibility of intensity noise squeezing of laser light below the standard quantum limit. Using an N-mode model, we show that squeezing is limited to a floor level of 2(K-1) times the shot noise limit. Thus, even a modest Petermann factor significantly impedes squeezing, which becomes impossible when K>/=1.5. This appears as a serious limitation for obtaining sub-shot-noise light from practical semiconductor lasers. We present experimental evidence for our theory.